Mortgage Insurance Premium Deduction: When will TurboTax be update due to new bill passed?

[bubbafrombama]

The Federal Government Spending Bill that was just passed and signed into law on 12/20/2019 contains the "Extenders" package that allows MIP deduction again, including for tax year 2018.

Questions:

1: When will TurboTax be updated to allow for this, especially 2018 version?

2: In the meantime, can we just add that MIP (normally Box 5) to Box 1 if we want to file/amend before TurboTax is updated?

[rjs · Accepted solution]

There is no date yet for 2018 TurboTax to be updated, but you should expect that it will take a while. The software doesn't get updated the instant that a new law is passed. The law that the president signed last Friday makes hundreds of changes. It's not just the mortgage insurance premium deduction. TurboTax has to wait for the IRS to publish procedures and revised forms for all the changes, and then it takes a while to make all the changes in the software, test them, and get IRS approval for the updates. Also, right now the IRS and TurboTax are devoting all available resources to getting ready for filing 2019 tax returns. I'm sure that retroactive changes for 2018 will not be the top priority.

You cannot add the mortgage insurance premiums to the mortgage interest. It will have to go on a separate line on Schedule A, but the IRS has not yet issued a revised Schedule A for 2018 with the line for mortgage insurance premiums.

[cbuckner4]

The IRS has now updated Schedule A to include the mortgage insurance deduction.   

[xmasbaby0]

@cbuckner4 That may be true but it will take a lot longer for the tax software to be revised and for the IRS to approve of the software.  Be patient.

[Critter]

for the 2019 return ... click on the REVIEW tab to see when the Sch A is estimated to be operational (subject to change) ... right now the chart says 1/23 and since the IRS will not process any returns until 1/27 at the earliest you have time to spare ... be patient ...

https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

[rjs]

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@cbuckner4 wrote:

The IRS has now updated Schedule A to include the mortgage insurance deduction.   

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The IRS just updated Schedule A on Thursday (Jan. 9). They have not updated the Schedule A instructions yet. The software doesn't get updated the instant that the IRS updates a form. Getting the updated form from the IRS is the first step in the process, not the last step. TurboTax still has to get updated e-File formats and procedures from the IRS, make the changes to the software, test the changes, and get IRS approval for the updates. It's going to take a while yet.

[Critter]

To all the eager beavers out there ... do NOT be in a rush thru the door this season.  Due to the last minute form changes there are bound to be some bugs/glitches in the efile system that will need to be addressed.  The last time this happened thousands of early filers got caught in limbo  and were either lost completely or took weeks to process.  Never volunteer to be first into the shark tank ... wait until the sharks are full. 

[xmasbaby0]

You have three years from the filing deadline to amend a tax return to receive any additional refund.

[Critter]

@Sedonamoongoddess 

If you are a preparer then you cannot be using the Turbotax program and you are posting this question on a TT forum.  You need to be using a professional software and asking them when they will have the 2018 program corrected.  And since you have 3 years to amend why can you not make a note of the clients who need an amended return and get to them later in the season or even after season?

[Sedonamoongoddess]

oh no, I thought i was in intuit...

[brassmonkey007]

I have the same question and now it is Feb. 1, 2020.  I could not figure out why when I amend that it still says I am under 24000 when with my PMI, I will be close to $30,000.  Apparently this is because Turbo Tax 2018 has not been updated yet to acknowledge PMI is now deductible?  I am under the 109000 AGI but over 100000  (about 104000) so the deductability of my PMI may be reduced???.... I guess I have to wait to find out and wait to file my amendment via Turbo Tax 2018.

Please let me know if any of you notice when Turbo Tax 2018 is updated to calculate the amendment for us.

-Brassmonkey007

[cbuckner4]

I ended up doing my 2018 amendment manually myself.  Just mailed today.  I couldn’t wait anymore.  Ended up owing last year without the ability to deduct mortgage insurance and have been making payments.  Had to file the amendment to fix that; otherwise, when I file my 2019 return the IRS will take my return.  Now have to wait for the amendment to be processed before electronically filing my 2019 return...

[xmasbaby0]

Wait about 3 weeks from mailing the 1040X and you can check the status of your amended return:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

It takes about 3-4 months for an amended return to be fully processed.

[Critter]

If you have a refund on the 2019 return then put it on extension and WAIT for the amended return to fully process before filing the 2019 return.

[manderine111]

I noticed the IRS released the 2018 revised Schedule A for Itemized Deductions about a week ago.  But apparently Turbotax still hasn't updated for that yet because when I tried amending tonight to add PMI there was no change to my tax bill.  Ugh so frustrating.  I'm tired of waiting to file.  Half tempted to just do it manually as well.  Hopefully Turbotax updates soon.